![\"Hospitals](\"https:\/\/alcleanscarpet.site\/Weatherby\/wp-content\/uploads\/2023\/05\/istock_000000688576_extrasmall_sm.jpg\" "\\"Hospital")
All hospitals must now give Medicare recipients notice when they are in the hospital under observation status. The notice requirement is part of a law enacted in 2015 but that just took effect.<\/p>\nAll hospitals must now give Medicare recipients notice when they are in the hospital under observation status. The notice requirement is part of a law enacted in 2015 but that just took effect.<\/p>\n
Signed by President Obama in August 2015, the law was intended to prevent surprises after a Medicare beneficiary spends days in a hospital under \u201cobservation\u201d and is then admitted to a nursing home. This is important because Medicare covers nursing home stays entirely for the first 20 days, but only if the patient was first admitted to a hospital as an inpatient for at least three days. \u00a0Many beneficiaries are being transferred to nursing homes only to find that because they were hospital outpatients all along, they must pick up the tab for the subsequent nursing home stay — Medicare will pay none of it.<\/p>\n
The law, the Notice of Observation Treatment and Implication for Care Eligibility (NOTICE) Act<\/a>, did not eliminate the practice of placing patients under \u201cobservation\u201d for extended periods, but it did require hospitals to notify patients who are under observation for more than 24 hours of their outpatient status within 36 hours, or upon discharge if that occurs sooner.\u00a0 The Act required hospitals to begin giving patients this notice as of March 8, 2017.\u00a0 Some states, including California and New York, already require such notice.<\/p>\n To avoid violating the law, hospitals that accept Medicare patients will now have to explain to patients under observation that because they are receiving outpatient, not inpatient, care, their hospital stay will not count toward the three-day inpatient stay requirement and that they will be subject to Medicare\u2019s outpatient cost-sharing requirements.\u00a0 The law does not make hospital observation stays count towards Medicare\u2019s three-day requirement.<\/p>\n For an article from USA Today<\/em> about the new requirement, click here<\/a>.<\/p>\n For the text of the NOTICE Act, click here<\/a>.<\/p>\n Hospitals Now Must Provide Notice About Observation Status<\/a><\/p><\/blockquote>\n